lori: nice rally underway. good afternoon, everyone. i am lori rothman. melissa: i am melissa francis. it has been 1351 days since the senate last passed a budget despite the law. they must pass a budget every year. lori: speaking of cash, treasury, budget him a new is jack lu? a man who is likely to be dominated the next treasury secretary. melissa: it is no secret that congress -- even the cardassians. lori: cannot wait to hear the results of that. let's check on the market. it has been 15 minutes since we last checked with nicole petallides. nicole: there are nice gains.

we have come off of our earlier highs. still, the dow jones industrials up about 55 points here on wall street. the u.s. dollar also with an up arrow. commodities are pulling back. let's take a look at herbalife. a name that has certainly been in the news since the middle of december. we sell the stock shooting up. this is an 8.2% stake. what you see is that pushing the stock to really jumping.

we will continue to follow this and all of this comes on the heel of concerns about herbalife. melissa: thank you so much. 1351 days, that is more than three years, just in case you are wondering. the law requires congress to pass a budget every year. should somebody be in jail? >> it is a strongly worded suggestion. we have never seen anything like three consecutive years like this. senate democrats are saying we will not even try. what is the use. melissa: they said they would maintain fiscal responsibility.

melissa: barack obama's first title -- when he came into office, he said no longer will we kick the can down the road. we will have this very serious process. continuing resolutions and that is where we get all of these tactics under goodies. it is a terrible process. melissa: is in a matter of a difference between revenues and outlays? >> you start by just having a budget. melissa: do they have to balance or do you just need a plan of some type? >> i would love to have them balance. they are terrified of saying what they want to cut. even if you believe that federal spending at a minimum has to be

$3.7 trillion, which both sides believe, i do not. you will have to make tough choices because medicare and social security are swallowing up larger portions of the budget. you have to have a public thorough process about what else you will squeeze, cut and trim. melissa: why would they ever do it again. it seems like there is only downside. >> they have to pay the political penalty. it takes politicians who actually have the courage to say, yes, we will cut this. we do not need this particular department. yes, we can cut military spending which republicans are mostly terrified of admitting. melissa: do a great and olive

branch to the table and really start. what would you offer? >> that is where i would start. in return for that, have a budget process and you have to take a serious look, by which i mean cutentitlement for the future. melissa: maybe we can make some progress here. >> i do not think we need the department of commerce. if you are not willing to have that conversation, everyone around us can cut 5% out of their own budget and the private sectors. melissa: very rational. matt welch, thank you. lori: governors wore congress. to reach out and who has the latest from d.c. rich: it is that annual spending

cuts. they were supposed to already hit the budget this month. it has been delayed a couple of months because of that budget deal. the federal government telling states they have to spend a certain amount of money on particular programs. to that, they basically say, do not hang it on us. >> congress should not oppose this on states as a condition of receiving federal funding. in other words, if states receive federal cuts, washington should not demand the same level of service without providing the same level of funding. rich: the states have plenty of work to do themselves. the retirement obligation

shortfall exceeds call while exceeds, $1.8 trillion. the pension shortfall and healthcare account for that. also here in washington, news that we have been reporting here on fox for the last week, by the end of this week, jack lu will succeed treasury secretary tim geithner. we knew that enough was likely coming at the end of this week. the afghanistan president is in town on friday. we are looking at tomorrow. still have not confirmed that specific portion. lori: thank you so much. melissa: dish network submitting an offer to buy wireless broadband provider clear wire for $3.30 a share or $5.15 billion. topping an earlier bid from

sprint. >> once again you follow what the consumer is doing and they are moving to wireless. we want to offer wireless voice and video. don: how about a direct tv merger? >> there is a lot of speculation. melissa: pressing him and getting the story. sprint which owns half of clear wire they throw a wrench in dishes plan. they could push for large shareholders to force sprint to sell. lori: i am looking down, it is good to see some competition. robert -- will lead the agency after nearly four years of service. if i had a beat here, i have the press release.

significant actions connected to the financial crisis. record numbers of cases involving insider trading and misconduct by investment providers. among other compliments and leadership. of course, all of that stemming from the financial crisis. continuing here general motors focusing squarely on regaining its financial footing. the outlook for this year is next. melissa: and the very latest from hugo chavez. let's take a look at medals as we head out to the break. it is a down day. we will be right back. ♪ [ male announcer ] where do you turn for legal matters?

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melissa: see, we are already having fun. it is time to make money with charles payne. what you have for us folks back. lori: maybe you guys want to share the joke. charles: we did this august 9. today it is of big. rbc capital say that they like it. you will see these firms get upgrades all the time. in this case, they initiated coverage on a company like three years ago. listen, it is up about 10% since we talked about it. their celebrity lifestyle designer fragrance continues to do very well. up 26%. they just bought a whole new group of pregnancies.

lori: i will send it to you. melissa: you better be careful. charles: i will high karate. i have tried them all. [talking over each other] charles: i used to have about 50 colognes. i have this friend that used to wear too much cologne i do all of mine away. melissa: they say that that is one of the big money makers. they do the book, the radio, the perfume is like a layout. you do nothing. somebody else makes it and you put your name on it. we could have a perfume. i am going to call it "money." charles: it should smell like fresh money.

you know how it smells. melissa: very good. charles: stick with elizabeth arden. they are growing all over the world. lori: i think it is the spa business that is driving it. as we do every 15 minutes, let's check the markets. nicole petallides on the floor of the new york stock exchange. nicole: i could always use a good start. let's take a look at boeing in particular. still down for the week. you may remember over the last two days we have covered boeing and the 787. liner. not good news. we have seen the stock selling off. today making a little bit of a comeback. up about 3%.

they had a fuel leak and an electrical fire. you do have one analyst touting the stock while others are saying get on the sidelines and take a breather on this one. back to you. melissa: thank you so much. fox business stock alert. shares of gm hitting a 52 week high. the automaker is doing "internal plumbing" to become more profitable. lori: toyota is the world's largest automaker in the last year. it is tough. melissa: morgan stanley said to weigh out more than 3000 workers. charlie gasparino all over this. we will talk to him about this coming up next.

lori: take a look at the dollar. stronger across the board today. we are back after this. ♪

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♪ >> 21 minutes past the hour. i have your fox news minute. fifty people injured after a ferry from new jersey struck a dock. witnesses say a corner of the very ripped open like a tin can. it confirms the propulsion system was recently upgraded. there is no reason to believe that was the cause of the crash. joe biden meeting with safety groups. 2012, the warmest year on record for the continental u.s. easily breaking the one set in 1998. they say the average temperature

last year was just over 55 degrees. that is 1 degree above the prior record. those are your headlines on the fox business network. talk to melissa and lori. lori: we are not going to be breaking that this year. melissa: thank you very much. top four stories today. aig's decision on suing the government. charlie: i believe last week i was on vacation friday for my ten martinis on vacation. jack lu, the single from white house to wall street. they all have obvious. melissa: you were saying earlier

that he was the lead guy. charlie: words are coming out that it is him. geithner, bob rubin, citigroup executive chairman. morgan stanley pretty significant news here. you have 1600 people being cut at the house. pretty big news. the bigger story, though, it will not end here. they will take another look at this midyear.

if market conditions still a pretty lousy for wall street, you can expect some more cuts. number three, aig, and a lot of press about how they may join. we are hearing this from senior directors directly. we are first to say that the board is disinclined. i could tell you, unless they are wrong, the ceo, this is not happening. no way, no how. if it does, i will eat my hat. i do not have a hat. now we are doing number four. bob chapman. the investor and herbalife.

guess what, yesterday he told the fox business network that a big story, a positive story, was coming out on the stock. the stock went up fairly significantly. watch fox business. you may make some money. sources inside morgan stanley are telling us that the firm may consider additional cuts by midyear. this is an ongoing rolling situation at morgan stanley. melissa: you said it is brokers or not brokers. charlie: brokers are taken out of these. melissa: investment banking. charlie: i think it is largely trading.

these other guys that do the deals and bring the company's public. from what i understand, it is now focusing hard on that. all of these things are across the board. institutional sales, trading, what is known as infrastructure on capital markets. things of that nature. not brokers, brokers were gone commission.

they just cannot get rid of people. [talking over each other] charlie: i am not going to say it. melissa: charlie gasparino, thank you so much. great job. lori: our next guest says he is urging his clients to go full throttle and. melissa: take a look at some of today's winners and losers on the s&p 500. you can see the gate technology trading higher problems 5%. we will be right back. ♪

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melissa: time for stocks now as we do every 15 minutes. let's head to the floor of new york stock exchange. nicole petallides is standing by. nicole, what are you watching right now. >> i'm looking at volume. market breadth looking pretty good despite we gave back earlier gains. dow industrials are up 59 points. that is a gain of nearly half of 1%. i also want to take a close look at the homebuilders, many which are hitting 52-week highs today. no surprise we've been seeing homebuilders on the run over last year or so with the housing recovery slowly but surely underway. some of the names are up 80% or 200% year-over-year 52 weeks, today hitting 52-week highs now. by the way that is supposed to be ryland. not pyl. that was supposed to be ryland. make a correction live if we can. we had guilden securities

initiating coverage. that could help things along. lennar, meritage, ryland. lori: thanks, nicole. especially for that correction. my next guest thinks the payroll tax will definitely impact investing in the future. as we approach the debt ceiling fight volatility will certainly rule the marketplace. we have jeff from polaris wealth advisors. jeff, welcome to you. >> thank you very much. lori: so higher payroll tax, i'm a little tired today, basically leaves fewer dollars to invest, is that what you're saying? >> right now we have the average person in the united states saving 3.6% of their income. so when you're taking away 2% of that, it seems pretty logical to think that kind of a tax would have a material impact on consumer spending. lori: is there a way to offset that? is there a way to offset that by taking more risk? polaris as you say in the media literature is a risk

on firm. >> risk on risk off vesting to whatteer talking about. when the statistical probabilities are in our favor we will invest more money into the stock market. when the odds seem to be against us we take money off the table and put it more into bonds and cash. right now we're fairly moderately invested. the earnings season is upon us as we're talking about. right now seems more like a 50/50 shot of disappointing or exceeding expectations. so seems like there's not enough rick to be really overweight in stocks at the moment. lori: gotcha. how quickly are you adjusting the risk on risk off profile? >> we try to be a very proactive what we do, looking at sentiment, looking at the broad based markets and potential strengths within the markets. we give a list of potential buys we want to bring to the table and certain indicators that we break certain thresholds we would be quickly out of the market. i don't mean all in or all out. i mean shades of gray so to

speak. lori: how would you characterize the over all health of the market, overbought or oversold? >> slightly overbought. i think on a valuation basis i think it looks to be properly valued. i don't think we're in a situation it is a buying opportunity on a purely valued basis. again it doesn't seem to be overvalued as well. lori: before you would increase your exposure to equities? if we're looking at s&p 1460 right now. >> i'm sorry repeat? lori: if we're looking 1460 on s&p right now, i love the technicals. is there a level here you would look to put more investment in equities? >> well, what we're looking at is other indicators rather than just a where they are price point in the market. lori: such as? >> right now we had a huge run-up, relative strength. we're looking at sentiment of the marketplace which is coming off of being bearish which is actually a positive thing for the market being it was oversold for a little while. but the first couple of days of market ran the market into an overbought

situation. it is kind of like a pressure cooker. so we're letting out a little bit of steam the last few days. once the steam is gone we're likely to go fuller into the market. lori: i got to run but a couple of sectors you're in favor of right now. >> i love the industrials. financials. even what went on with morgan stanley, financials look like they're fairly attractive as well as consumer discretionary. lori: good stuff. jeff powell, thanks so much. >> my pleasure. melissa: we have news. venz venezuela's ruling delaying president hugo chavez's inauguration is legal. they decided he doesn't need to be sworn in to start a new testimony and cat can not be declared absent. the supreme court said his minister should continue uninterrupted and inauguration will be held at a later date. they postponed today's inauguration of hugo chavez allowing him to recover from cancer surgery in cuba.

the constitution states the new president must take office by january 10th. they will allow chavez to recover before taking office. lori: who is running the government? melissa: fox business contributor phil flynn of price futures group is in the pits of the cme. phil, the real news is the inventory report. i see goose lien moving lower after a bearish report that showed gasoline supplies swelled. >> i think bearish was an understatement. it was a flood of gasoline. we saw gasoline supplies surge by 7.4 million barrels. holy smokes! that is three or four weeks worth of gasoline all at one time. that put inventories at a 22-month high. that came as demand for oil products overall fell to a 11-month low. we're seeing pressure on the gasoline prices. with a number like that you would think we would be down more than 2 1/2 cents. there is always skepticism

about these numbers this time of year. get a big build this week. perhaps it will go away next week but i think right now definitely putting downward pressure on gasoline prices. that is good news if you're going to the pump. melissa: yeah, absolutely. that is an enormous build. natural gas though, really the big mover today. it is having a terrible day. >> it is. i'll tell you what. this is market that can not get anything going for it right now. despite the forecasts of sharply colder weather in the short term, the temperatures will be pretty warm especially here in chicago in the midwest. really the heart of natural gas consumption country. i'll take it a step further. one of the things that is really putting pressure on this market is the inability to cut back on production. a lot of people thought, if natural gas was in the low rate production would stop. production is going higher. hard to get the market rallying when you are hearing less demand and more supply. melissa: the answer is to put the natural gas to work then and we'll save money

elsewhere. phil flynn, price futures group. thank you very much. >> you betcha. >>. lori: facebook is has invitation to the media. melissa: i didn't get one. what are we talking about? who is jack lew? an inside look at the man poised to take over as treasury secretary. ♪ . ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance

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lori: here's your fox business brief. snapping a two-day losing streak stocks continue their upward trend as fourth quarter earnings season gets off to a strong start with alcoa last night. right now the dow is up 61 points. billionaire leon black apparently sweet on hostess. "new york post" says the head of private equity firm apollo global management teaming up with a met trop police on a potential bid for hostess's snacks business. an auction house expects to fetch $100,000 when it sells a rare 1865 baseball card of brooklyn amateur baseball club. it was discovered at a yard sale in maine. the manager says he is aware of only two such cards in

existence. the other one is at the library of congress. that is latest from the fox business network, giving you the power to prosper.

lori: our own charlie gasparino just reported jack lew likely to replace treasury secretary tim geithner to be exact, charlie has been reporting that for a couple weeks already. anyway the official nomination could come as early as this week but who is jack lew and what could his policy mean for the future of our economy? david wessel, economics editor for "the wall street journal" joins us now. david, thanks for joining us. >> a pleasure. lori: so as we approach this battle over spending cuts with regard to the debt ceiling we know that jack lew has been sympathetic, supportive of president and his agenda, supporting entitlements, supporting spending and what not. so what's your take whether or not we'll get meaningful spending cuts with a

treasury secretary like jack lew? >> well, i think when you look at jack lew's background and compare him to say tim geithner, the present treasury secretary what you see is a couple things. one, this is a guy who knows capitol hill very well. he has spent a lot of years on the congressional staff. all of it working for democrats. he worked for tip o'neill. he worked for joe moakly. unlike tim geithner who never worked on capitol hill he has a sense how to get deals done in congress. secondly he comes from the liberal wing of the democratic party. i talked to him when i worked on my book about the budget, red ink, last year. he believes in the power of government. he is not going to be very sympatico with people like paul ryan who believe the whole role of the budget exercise is to shrink the government. three, he is realist, pragmatist. he understands if we don't do something to slow the

growth of enlightment spending there won't be room to do all the things investment in infrastructure, all those things that matter a lot to the president and to jack lew himself. i suspect that he will be, spend nearly all his time on budget matters and he has a chance of being a deal-maker here, even though so far he hasn't been very successful in that. melissa: what does it mean in terms of the job the treasury secretary does? that if you are known to embrace, more liberal economic policies what would you expect practically to see him do? >> well, it's not the first time we had a treasury secretary who believed in government policy. we had bob rubin, we had larry summers in the clinton administration. what i expect it means is that he will be very aggressive in pushing the president's agenda in budget talks to make sure that when we restrain spending, when we cut spending, as we surely will have to do at some point, if not in this presidential term. melissa: i don't know. >> some future term, that we won't cut those investments

as they put it that they think are vital for the future. i also think it is interesting though that we have a treasury secretary, although he was at the state department, he was a management job there. although he did work a couple years at citibank, has basically not had a lot of wall street experience. hasn't had a lot of experience in international negotiations. so i suspect there will be looking for someone to comply meant him in the deputy's job who has strong in --. lori: follow up on this point. sorry to cut you off. we're always on a tight time clock here. you know, as far as his track record when he was omb director in the clinton administration he did get a bipartisan budget deal with a surplus. you touched on this. what is the likelihood that can happen again? >> right. look, everybody would love to go back to surplus pluses but the times are very different. we had a strong economy then. we had a bubble. we had all the years of shrinking deficits. he is not in that position now but it does mean knows the ins and outs of budgets. this is not a guy who has to

learn on the job and that is probably a good thing given how messy our fiscal situation is. lori: thank you so much, david wessel. >> you're welcome. melissa: quarter too as we do every 15 minutes let's check the markets. nicole petallides on the floor of the new york stock exchange. watching facebook for us. >> we're keeping an eye on facebook on the move. you remember the ipo back in may with $38 ipo. staying below 20 bucks. on the rise, back above $30 a share for the first time in six months. certainly good news there. it is a $30:45. that is gain of nearly 5% today. earlier today here on the fox business network we noted that next week, january 15th, 10:00 a.m. pacific time, they are going to have something big. they said come and see what we're building. so it is pertaining to their headquarters. is it pertaining to phones? what will facebook unveil next week? as a result they're certainly building buzz and giving the stock a boost. back to you. lori: -- headquarters. melissa: nicole, thanks so much.

lori: in the market for a $12,000 tv? that is curved? live from the consumer electronics show with the latest offering from lg. melissa: that changes everything if it is curved. americans opinions of congress reaching new lows but how do the dismal views stack up against brussels sprouts, even the kardashians? [ woman ] if you have the audacity to believe

your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.

melissa: ces day two. for lg, it is all about the tv refreshing plasma and led models. shibani joshi is live in las vegas with a preview. shibani. >> hi, ladies. we talked so much about tablets and smartphones and all these small mobile gadgets but still remains at the heart of ces all about the television screen. we're here in front of the world's largest wall-mounted television. it is being produced and made by lg. we're joined now by the company's senior vice president james fishler thanks for being with us, james. tell us what this is. it is huge. >> this is 100 inmuch laser projector. this means that the projector is near the screen, a mere 22 inches from the screen. 100 much screen, 1080p resolution and all the

features. >> this looks like a projector but this is a huge well lit conference room. >> that is the amazing thing. [inaudible] the 1080 p. >> let's look along the showroom floor which as you see is very, very busy. i want to ask you about 3-d television. they're all the rage. people here, when the photographers here, everyone is still wearing 3-d glasses. is that technology gone? we've moved on. we're talking about hk and oled. people are saying i just got the 3-d television set. >> 3-d is not gone. there are 3-d movies and videogames and on prepackaged media and all the new technology. ultrahigh definition and oled enhances the 3-d experience. >> this is hot booth. this is very crowded because

everybody wants to see what you have, james. let's talk about 4k or ultrahd television sets. i am upset i have a brand new hdtv set. i'm realizing it is getting even better. did i waste my money. >> not at all the ultrahigh definition represents the latest technology in picture resolution. it is four times the resolution of 1080p. this model is 84 inches in 4k or four times the resolution. we started shipping the model october last year at about $20,000. here at the show we announced two new models, in a 65 inch screen size and 55 inch screen size. >> before we go. we have oled ii. we'll not be able to see that. one of the biggest issues getting 3-d traction was content to show off things you can do. what do you think we'll be at the point of marriage of the content and devices?

>> over 100 movies shot natively in 4k. the thing about our product anything you want to watch, lets us upgrade from 2k to 4. this is the future. >> we're in the middle of the party. this is all about television sets but tlont throw your old one as way. melissa: shibani, thank you very much. very cool. lori: let's be honest in a popularity contest who wins me or melissa? no, i'm kidding. congress probably isn't near the top. how you ever feignable are they? check out results from public policy polling. it is a tie, right, between you and me? melissa: you win for sure. lori: that is better. everybody's favorite veggie, brussels sprouts much more well-liked than congress. >> like brussels sprouts. lori: i told you how to bake them. also more popular, going for a colon as skoppy. good times. 60% of the find people, road rage, traffic jams more favorable than

representation in washington. is congress more popular than anything? in fact it is. lindsay lohan and the kardashians do rate lower. there you have it. melissa: kardashians rate lower and people mack magazine will pay a million bucks for the baby photos? why do you buy the magazines if you don't like her? i don't understand that. lori: that is about the next train wreck. i actually for the record don't mind the kardashians. they are a good close-knit family. they live over and beyond the means that could ever understand or get comfortable with but they're good peeps. they stick up for each other. melissa: coming up tonight on "money", a professor joins me to discuss his new study that finds canadian oil sands are contaminating a large area than originally thought with cancer causing car stin owe against. that is very uplifting at 5:00 p.m. eastern on fox business. i'm not a huge fan of the

card dashians. my response was right there. lori: that was a great segue going from the card dashians to. melissa: carcinogens. lori: boeing is confident in the deem liner despite a mysterious fire earlier this week. bb&t capital markets carter leaf downgraded the stock on safety concerns. he joins tracy byrnes and ashley webster next on fox business to guide you through another hour of trading. [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place

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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. it is the first positive day for stocks this week. the dow is up 56 points as you can see but off its best levels today. blackrock's chief investment strategist russ koesterich will tell us where he sees the biggest opportunities right now. tracy: jack lew expected to be tapped for treasury secretary tomorrow just in time for a critical battle over the debt limit, government spending and

taxes. so is he up to the task? that is a first day at work, huh? ashley: good luck with that. the record flu route break costing american businesses billions of dollars. fox newsmanney alvarez says companies need to do more to protect their employees. he will be along to talk about that. tracy: what do you do? put biggar badge bags over everybody? ashley: stay at home. tracy: doesn't work for us though. time for stocks as we do every 15 minutes. we head down to nicole petallides on the floor of the exchanges. stocks are up but kind of off their highs, right, girl? >> tracy made me laugh. biggar badge bags for everybody. down in a place like this we all should have flu shots. the dow jones industrials are up about 55 points points right now. looking pretty good. health care and industrials doing well on wall street. drug index has up arrows. the nasdaq, both the dow and nasdaq up half a percent. s&p 500 up one quarter of 1%. we should note that the vix

is at a level of 1378. taking a step back, taking a breather. the fear gauge hitting a five 1/2-year low. so taking a breath there as far as fear and worries here in the market. alcoa of course with a good outlook helps things along today as well. let's look at herbalife. i was over at the post. a name we followed since the middle of december. today we heard dan loeb reported a huge steak, a big 8.2% stake in the company. that gave it a nice big boost today but this comes on the heels of act man and pershing square being worried about the company having short positions. 3% gain today. back to you. tracy: nicole, we'll take it. ashley: president obama set to nominate we've of white house staff jack lew as treasury secretary. if confirmed he will have to jump into the debt ceiling debate. that will be trial by fire,

isn't it? rich edson is live at the white house. >> this is the reason why he is selected. he has really been a budget person here in washington for the past 30 years. he was budget chief under the clinton white house and obama white house. he has been in all the particular budget fights especially next to president obama with the debt ceiling year-and-a-half ago in most recent recent round. according to folks early in the week telling us at fox we would get announcement by the end of this week that jack lew would likely be the next treasury secretary pick from president obama. we don't have much week left. on friday the president of afghanistan, hamid karzai is expected to be here at the white house. that has us all looking at tomorrow as the official date for this. the reasoning behind that, yes, he has been in on all of the budget fights. he spent all of last few years really of his career in washington, d.c. in the federal government. he spent a few years at citigroup. he was the chief operating officer at the alternative investment unit but has spent the bulk of his time in government.

now as for whether or not he will be confirmed by the senate one republican senator says he will face opposition. >> it is a bumpy confirmation process. i think the american people need to know that the secretary of treasury will tell them the truth about the financial conditions of this country. he will help lay out a plan that can be analyzed and studied and will hold up under scrutiny. and they haven't done that from the white house yet. he has been an architect of their failure to lead. >> other republicans criticized jack lew isn't necessarily someone who wants to cut a deal. he was difficult to work with they say during the debt ceiling negotiations in 2011. there are other who is say probably that is a plus in the eyes of the president. back to you. ashley: rich edson, the latest on jack lew. rich, thank you very much. we have some breaking news for you, very interesting indeed. major league baseball announcing no one, no players will be inducted into the baseball hall of fame this year.

there are highly controversyal because some of the game's top players were eligible for the first time. of course steroid scandals, have plagued the legacy of barry bonds and roger clemens among others on that list. there you have it. no one inducted into the baseball hall of fame. very unusual. tracy: very unusual. they said of the 600 voters they were expecting many to just return a blank form, you know, basically saying people used steroids should not be in the hall of fame. ashley: i guess they have spoken. tracy: wow! as a mother of a baseball player kind of happy about it. sorry. ashley: don't be sorry. tracy: sorry. set an example here. will jack lew's nomination for treasury secretary impact these markets? joining us with more on that plus some of the biggest issues he sees facing the market this year, blackrock's chief investment strategist russ koesterich. congratulations on your big promotion. love the title. sure it really looks good on a business card. >> thank you very much. tracy: we got a lot going

on. we got a debt ceiling. we got dodd-frank coming to the markets. we got small businesses just down in the dumps and don't want to hire. and yet you have a positive outlook for this market. how? >> we do. i think by positive let's qualify what we're talking about. i'm not sure this will be a as strong of a year as 2012 but we do see opportunities. i think on a relative basis stocks still look better than bonds. we do expect the market to move higher this year particularly outside of the u.s. the short answer to your question is, that while the market has a nice rally in 2012, by and large valuations are reasonable particularly internationally. that gives you a little cushion as some of the challenges and some potential bad news is already reflected in the price of the stocks. ashley: that is interesting, russ because a lot of analysts we had on here they believe fundamentally stocks are pretty well-priced. you're especially lukewarm at best it looks like on u.s. equities? >> i wouldn't say i'm lukewarm but i say there are

better opportunities elsewhere. i think the point you made is a key one which is relative valuations. so take the u.s. right now. looks reasonable relative to its history. looks very cheap compared to bond but if i compare u.s. equities versus the rest of the world, ex, u.s., u.s. stocks are trading about a 40% premium based on price to book. for a lot of the last few years that premium was justified. the u.s. was growing faster. we were in safe port in the storm. as you discussed a moment ago with the debt ceiling looming and other issues it is not clear that premium is justified today and there may be better opportunities overseas. tracy: what does that mean then? we're talking about emerging middle class in emerging countries and does that mean consumer staples used in those countries are really good plays for people right now? >> actually i think that's been a good play for the last few years but what i would advocate own the emerging markets directly. one thing people have done since 2010, you owned

staples, you owned companies in the u.s. who sold to those consumers the problem now many of those companies, particularly in the staples sector have gotten quite expensive. tracy: that's true. >> on the other hand emerging market stocks are rather cheap trading at 20 to 25% discount to developed markets. that is where i see one of the better opportunities for 2013. ashley: russ, what about fixed income? you believe the bull market in treasurys is over. where should that money go? >> you know, we do think that treasury yields have bottomed outside of, you know, sort of a shock and economic shock, that said, we do think that the backup in yields will be very slow. but even with a slow backup in yields what it means that people have exposure to duration, have a long exposure to, long-dated maturities, face a lot of risk in terms of the capital. so instead what we would like is credit. we like high yield, not because we think it will appreciate much in 2013, but on a relative basis the

income is much more attractive. we like municipals. an asset class with some risks but better discounted in the price than we've seen in the treasury market. tracy: hard to find these days. so, russ, what keeps you up at night? with all this stuff going on, what worries you the most about -- >> many things. tracy: i bet. give us one or two quickly. >> where to start. i do think, the u.s. is a source of risk, not major risk the way we're talking in 2008. it is not systemic risk but i do worry about the impact of all the fiscal drag, the tax hikes, potential spending cuts in a sense this may be a much slower start to the year than investors anticipate. if you compound that with a fight over the debt ceiling and a downgrade we may see again that the u.s. is not the safe haven many people have assumed it to be. tracy: yeah, hopefully we work ourselves out of this. hey, russ, that was great. thanks for being with us. >> thank you. ashley: great stuff. all right. story that's been getting a

lot of headlines, boeing shares bouncing back after tumbling on the dream up looer safety concerns. it has been one stumble to another. bb&t capital markets carter leake downgraded the stock. he will be here next to explain what he thinks about the situation. tracy: past treasury secretaries have work cut out for them. why should jack lew want the job and is the right man for the job? let's look how oil is trading. pretty much flat, $93.03 a barrel. we'll be right back.

tracy: dow's up. it is that time of day. got to make some mon money with charles payne. staffing and outsourcing service industry, a chinese company. >> you better be more than that right. i love to learn the source

of that. i've been to the website many times. you get the english translation but i still don't know where that name came from. i like china. everyone watching the show should have some exposure to china. if you don't have individual stocks, certainly some sort of etf. seven quarters in a row their growth rate has been down. i think they will turn that around. a lot of it will be government spending and that kind of thing but i think also a natural change in demand is happening. the big deal for them is online jobs. even though we talk about china, when it comes to computers almost as an advanced nation it really is not per se. online staffing space is going to be huge. this is big, big player in the space. the stock is relatively cheap. trading at 18 pe. less than one time peg ratio. they could offer jobs in accounting computers, pharmaceuticals. ashley: do they have a lot of competitiontics, charles? >> there are other publicly-traded names. i watched this stock in the past. this is classic momentum stock. when it gets going it is absolutely a beast a demon.

break out at 54 could take it up to $64. ashley: almost at 54. >> that is why i'm mentioning it right now. on the cusp of a nice breakout. ashley: china continues -- >> china officially looking for 7 1/2% gdp this year. i think at least 8%. 8% for us would be, what? tracy: a party. a 8% for them with beat the estimates. great thing about expectations. we know this from the market. not really what the news is. it is expectations game. i think they will beat expectations. tracy: i live my life with very low expectations. that way everybody beats them. charles payne, thank you very much. ashley: well you never get disappointed in life. tracy: that's the thing. ashley: even though president obama's health care law does not go into full effect until next year some already making moves to sidestep it. not a big surprise but listen to this. a nebraska wendy's franchise cutting employee hours so it doesn't have to pay for benefits as required by

obamacare. wowt is reporting that roughly 100 workers across 11 restaurants will have their hours cut to 28 per week. under the law employers will have to offer health insurance to people working between 32 and 38 hours a week. the franchisee says they're adjusting schedules simply because they can't afford to pay for coverage for every employee. that will be the first of many stories just like that. just can't afford it. tracy: exactly. but then these poor people can't afford it either. they can't pay for it on their own. ashley: that is true. tracy: very expensive. as we do every 15 minutes we check on the markets. nicole petallides on the floor of the exchange, still. still looking at a couple banks now, aren't you?. >> i am indeed. the banking index is to the downside but let's look a couple of movers. we're looking at morgan stanley and bank of america. the first is morgan stanley we know about the cuts they're doing. 1600 jobs. that is about 6% of the workforce. this will be in a variety of

areas but institutional for the most part. you see here the stock is down 1% but really has been all over the map today from positive to negative territory. charlie gasparino certainly was on this but, as i noted in the investment banking unit predominantly but not only here in the u.s. but also abroad you will see those cuts coming. let's also talk about bank of america. today bank of america was cut at a couple of places t was downgraded to a neutral from outperform over at credit suisse. it has been under some pressure is the price target at credit suisse they said $12 from 11 but they put it at neutral from outperform just saying that the stock has risen too far too fast. if you look at a one-year chart obviously it was the best performer on the dow last year and has had quite a run over the last 52 weeks. tracy: thanks, nicole. i love how the banks rate each other. ashley: makes you wonder, doesn't it? tracy: coming up boeing says it is confident in the dreamliner despite a number about safety concerns.

bb&t capital markets analyst carter leake downgraded the stock yesterday. he is here next to tell us why. ashley: first let's look how the dollar is moving today. the dow moving up 62 points. as you can see, the dollar is up against a majority of the currencies, including the euro and pound. we'll be right back.

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>> went one minutes past the hour, i'm gregg jarrett with your fox news minute. officials say 57 people were injured, two critically, when a commuter ferry struck a dock in new york city's financial district during this morning's rush hour. a corner of that ferry ripped open and passengers on board say people fell on top of one another screaming and crying. one witness, a ferry employee mentioned the boat was recently having trouble with maneuvering just moments before the accident. vice president joe biden meeting with gun safety and victims groups in washington today. biden is hearing personal stories of gun violence as he works on the obama administration's response to the shooting rampage in newtown, connecticut, last month. venezuela's supreme court says tomorrow's scheduled inauguration of president hugo chavez can legally be postponed. congress voted to delay the

swearing-in because chavez is actually still in cuba where he is developed complications following cancer surgery. those are your headlines on fox business network. i'm gregg jarrett. now back to ashley and tracy. ashley: greg, thank you very much. appreciate that. it hasn't been a good week for boeing's dreamliner that is the understatement of the day. just this afternoon a boeing executive said the 787 recent problems are quote, not raising any safety concerns. our next guest has his rating out. he dropped it from buy to hold saying these problems could indicate even more trouble ahead. joining us is carter leake, senior equity research analyst with bb&t capital markets. carter, thank you very much for being with us. we have had a laundry list of problems with the dreamliner. and of course, i see that you've downgraded the stock as a result. i mean how serious are these setbacks for boeing? >> well, ashley, thanks for having me. the issues aren't, first of all, there is no safety of flight issues, i have concur with boeing, that the

aircraft is itself safe. the issue is more of a pr issue and certainly a string of bad luck. i got off with boeing just a little bit ago, we found out the fuel issue, the second issue that arose yesterday turned out to be an error of the ground crew who failed to put back a fueling valve. so certainly a lot of bad luck as media attention was focused on them. that said our downgrade speaks more to, we just think that these issues in the aggregate, present enough risk for us that the bull case was predicated on the fact that all of the 878 -- 787 issues were behind us. i'm not comfortable making that call right now. long term boeing will work this out. the 787 will likely go on to be one of the most successful aircraft ever. i think we'll have more of these issues and because media scrutiny is here it will be tough for boeing. ashley: are these type of issues typical for new aircraft, teething problems

because boeing is under the microscope? >> they are. these issues are normal but the only problem boeing has had issues, if taken to their full compression could have been catastrophic. a fire, fuel leaks, uncontained engine failures. they have used up a lot of goodwill if you will and so now with media scrutiny upon us it will be more and more difficult and the fact that, you know, there are, you know, this is a unique airplane in the way it is built and the fact it is one of the biggest changes is that it is the most electric aircraft ever built --. ashley: that's right. >> the fact that we're having electrical issues and electrical issues are very difficult to troubleshoot and hunt down, will make this harder i think than previous aircraft. ashley: carter, stay there. we have to take a break. after the break we'll come back and discuss more about boeing and problems with the dreamliner. thanks very much. we'll be right back.

dennis: welcome back, everybody. we are continuing to talk about boeing and it 787. i notice that you said that these problems could force some kind of severe action from regulators as they get into this. what kind of action could that be? >> one of the issues that we look at is the ability of the aircraft to fly long distances over water. that is integral to what the 787 is all about. extended overwater operations. the electrical system and the reliability of the engines speak to the granting of this. as far as he tops, it is

currently being delivered at 180 minute. these issues are ones where regulators are watching very closely. its authority that they can withdraw at any time. dennis: that would have an impact on cash flow, would it not? could that have a big impact? >> this is not at a level where they can adjust it. it would be far more expensive to slow down. that is the difficulty in aircraft manufacturing. even if you determine you have

some type of issue, you keep building and correctly and you fix it after the fact. in regards to production rates, boeing will go ahead. ashley: thank you so much for the information. we appreciate it. that plane uses four times as much battery power than the 777. it is a new design and, obviously, there are some issues to be sorted out. tracy: those pesky batteries. got to get a check on the market. nicole petallides is on the floor of the new york stock exchange. nicole: the good news is, tracy and ashley, we have had two down days, we are getting some of that back. we are up about 60 points. how are you feeling about 2013? >> you need to get over the fear that has been implicit in the

equity markets. you take a look at what has happened with the s&p and returns. you need to realize that your money, in my opinion, you will be safer and equities. take a look at dividend paying stocks. the last test you just had on was phenomenal. people need to come out of that fear that hiding their money in the bond market. nicole: alcoa kicking off the season yesterday. how do you think that may affect the market overall? >> i think you had a great example of months until the day before. it is a basic material growth showing mobile growth. for the psychology of the

market, it was fantastic. nicole: we all know the psychology of the market is so important. sometimes we talk fundamentals and sometimes it is psychology. back to you. tracy: psychology is like a 5-year-old sometimes. [ laughter ] we will see you in 15 minutes. ashley: legendary beauticians -- musicians we've more than just their legacy behind. shibani joshi is live with more. do you think about headphones? the house of marley are trying to change all of that. thank you so much for being on fox business with us today. tell me how you made the decision to get into audio products and lifestyle products using the marley name.

>> we are not using the marley name, we are marley. it is just natural. we were always a family lifestyle. living is lifestyle. we thought that we should expand some of these beautiful ideas. shibani: we also have a huge array of products here. the pace of this is they are eco- friendly, but they are also premium. do you think the two can vary to the other? >> absolutely.

think about the environment. think about earth. shibani: water bottles. >> we call this rewind. we use recycle plastic bottles and created our own fabric. shibani: tell me how you elaborate. you are a business leader now. >> we are a family and we have ideas and we are creative and we have access to so many things. growing up in our lives we have always been approached with different ideas from different people. we thought it was a perfect opportunity to go together and use these natural fibers, beverages and fabrics and build a family legacy.

with these wonderful products and the design, they are beautiful. it is very earth friendly, eco- friendly. shibani: technology has helped you. >> we are here, of course. we are part of the family now. we are excited to be here. shibani: thank you so much. house of marley. back to you guys. ashley: shibani joshi. that is good stuff. tracy: she has the best job. the weak economy forcing many people with the flu to go to work anyway. doctor manny alvarez says do not do it. he is here next. ashley: let's take a look at the ten and 30 year treasuries. as you do that, we will be right back. ♪

♪ >> here is your fox business brief. snapping a two day losing streak. the fourth quarter earnings season gets off to a strong start. the securities and exchange commission announcing the director is stepping down from the agency after a four year tenure. they have not named a

replacement for him. dish network is making a play for their wire that upping the wireless broadband provider. there was an earlier bid from sprint. sprint may throw a wrench in dishes plan. this could in turn allow shareholders to sell. that is the very latest from the fox business network. giving you the power to prosper. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dingi ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

ashley: it has already been called the worst flu season in a decade. employers plan to lose billions and lost productivity. doctor manny alvarez joins us now. how bad is it? >> it is very bad.

this will be one of the worst flu seasons we have ever had. we had a bad love back in 2004. this is gearing up to be one of the worst. now we are seeing a tremendous amount of patients being admitted to hospitals. the sad part of the whole thing is that the flu shot, the flu vaccine has been available. plenty available to everyone and it seems to be a good match. it is never 100%. it is 70% protection. people are just sometimes not taking the shot. i did a survey and i surveyed 57 people i work around with. 33% of them said no, i did not

take the flu shot. these are college graduates. i do not get it. tracy: i do not get the shot. my children get the shot. i do not know, i have never gotten it. >> you are healthy. you take care of yourself. that is not the point. a lot of people are in the icus, people have died, children have died. thousands, not a few hundred, thousands of people die every year from the flu. ashley: is it easy to contract? >> it is very easy to contract. elevators, subways, buses, people coming in six, which is one of my biggest problems. unfortunately, with the economic downturn that we have had, people are frightened of losing any work days.

they need to do a better job informing the employees and getting the vaccine out to them. there are people paying the workers to get the shot. tracy: like news corporation. >> i will give you 20 bucks if you take the shot. tracy: what about preventative stuff? >> here we go, vitamins. vitamins are very important because they increase your immune system. take the vaccine. if you are sick, stay home. to the handwashing constantly. there are a lot of good products out there. yesterday i did a story about a new product about sanitizing the

surface for a long period of time. right now it is an epidemic. ashley: get the shot, tracy. thank you. tracy: all right, fine. fine. i will go get it. dish network making its bid to buy clearwater. who will win this battle? dennis kneale is that from, unfortunately, being sick. dennis: remember that old chestnut, stick to your knitting. it has been thrown right out the window. clearwater shares have soared almost 8% today on the news to $2.14 a share. that is almost the level of the dish did. dish is making a bold bet on broadband spectrum.

this also offers to pay $3.30 a share for clearwater stock. that could be another $2 billion or so. the question is, why? dish knows next to nothing about how to run a cellular service. at&t and verizon offer to bundle internet access, tv service, local, wireless, phone service. dish envies that arsenal of offerings. even walmart offers their own brand of cell phone service now. is this getting too big for its britches? any deal cannot happen without

sprint. sprint already owned 50% of clearwater. it has agreed to pay $2.95 a share for the other half. sprint says dish cannot buy that spectrum from clearwater under sprint old deal. back to you, tracy. tracy: dennis kneale. good to have you back. thank you. ashley: thank you, dennis. it is a quarter till. time for stocks now as we do every 15 minutes. heading to nicole 5 on the new york stock exchange. nicole: looking at both linkedin and facebook. we are talking about the amount of users. 200 million users around the world on link in. here is a look at the stock.

up 1.6%. that is great news for the company. let's talk about facebook. back above the $30 mark. now, next week we are waiting for the big announcement. certainly a lot of buzz surrounding facebook. it almost feels like apple, but it is not. it is up 4.8%. back to you. ashley: thank you so much. appreciate it. tracy: jack lu expected to be tapped to run our treasury. fox news juan williams will weigh-in next. ashley: helicopter jack. first, let's take a look at some of today's winners and losers. they spoke up nearly 5% again today. about 30 bucks. we will be right back.

♪

ashley: wrapping up its probe. it is a tax avoidance strategy. it may not like what it sees in apple's latest government filings. >> what is going on here is the senate has looked into a half a dozen tech companies and their tax avoidance schemes.

how will you basically not pay your u.s. taxes and, basically, they need the money to pay down the u.s. deficit. apple made some interesting disclosures. you will want to hold onto these numbers. this will be a hot button controversial issue. $28.5 billion is what it was all. look at this number. this is a big number. $82.6 billion. that is about 70% of its cash file. 83 billion. no, it is not legal. that is the debate now in washington, d.c., how do you get

companies like apple to bring back cash flow that called. they should cheer apple tax ashley: great stuff. >> watch out. you hold onto that $83 billion figure. that will be a hot one going forward. tracy: that will be a lunch conversation for a long time. thank you. charlie gasparino first reported jack lu as treasury secretary. our next guest says this is good news for republicans who are anxious to see obama get serious about budget cuts. one -- juan williams joining us now. we need somebody who walks down the middle of the road. jack lu is pretty close to that.

>> he is known to be a really low-key nonpartisan in many ways. his history is on the democratic side. they went on to work for president clinton ahead of omp. the reason that i think people like eric cantor, the house majority leader, seem absolutely welcoming of jack lu is they think they can do with him in terms of making major cuts of entitlement spending in this country. his experience in washington goes back to working with what was then called a green span commission on cutting away at government spending. he is part of this. jack lu maybe the surprise supporter for republicans going into this position.

tracy: arguably save president obama's presidency if it all works out in the end. what did you think about timothy gardner? did you think he was not willing enough to compromise? >> he became the bad guy. he was sent over there -- and he burned bridges, it did not matter. i think you will get a new hand with him. this is not a guy who is an economist. he is a negotiator. tracy: let's flash forward to the debt ceiling today. what do you think happens? >> i think that the democrats will hold hard on this idea that, you know what, we are tired of you go shooting with

the debt ceiling. i think that republicans have leverage. it may not be above board and it may not be to embarrass the president, but, believe me, there will have to be some concessions to republicans or they will be at the edge of the cliff. it just seems to be the way they play ball on the hill. tracy: you are right, it is déàa vu all over again. thank you, sir. >> thank you. tracy: make sure to tune in tomorrow at 1:00 p.m. eastern. ashley: all right. good stuff. always on point. liz claman takes us through the next hour of trading.

she has an all-star lineup. of course, she does. they are talking chips and alter books in a fox business exclusive. yes, she has ten tivo. "countdown to the closing bell" is next. ♪

>> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was

until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. t